UPDATE: The devastating impact of Australia’s housing crisis is exemplified by Rebecca, a 58-year-old mother of two, who has moved a staggering 42 times in just 37 years as she struggles to find a stable rental. Her story underscores the urgent need for action as families across the nation face increasing instability.
Rebecca shared her challenges with NewsWire, revealing the emotional toll of her situation. “It’s very difficult to put down roots in a community,” she stated. Without a secure rental, she cannot volunteer or foster children, leaving her feeling disconnected and anxious.
The rise of short-stay holiday homes, particularly platforms like Airbnb, has drastically reduced the availability of long-term rentals. “I had secured a rental in the Adelaide Hills, but my landlord sold the property, and the new owner turned it into an Airbnb,” she lamented. Currently, she rents a room in the beachside suburb of Glenelg on a cash basis, fearing the constant instability of her living situation.
Rebecca’s plight is echoed by advocacy group Everybody’s Home, which highlights how negative gearing tax concessions are distorting the housing market. This policy allows property investors to offset losses against taxable income, but critics argue it unfairly advantages short-stay accommodations over long-term rental options. “Everyday people are footing the bill for property investors,” said Maiy Azize, a spokeswoman for Everybody’s Home.
The group’s latest report reveals shocking statistics: over 167,000 entire homes are currently listed as short-term rentals, exacerbating the housing crisis. Modelling suggests that eliminating negative gearing for these properties could return between $111 million and $556 million annually to the Treasury.
In response to these alarming trends, Everybody’s Home is calling for amendments to the Income Tax Assessment Act, aiming to exclude short-stay accommodations from negative gearing deductions. Their long-term goal is to abolish negative gearing entirely for investment properties.
However, Prime Minister Anthony Albanese has dismissed the idea of changing negative gearing policies. “If we were going to make changes, then why haven’t we?” he stated during an interview with Sky News. The government’s current focus, according to Housing Minister Clare O’Neil, is on increasing housing supply, with $43 billion allocated to enhance availability and streamline construction processes.
As the housing crisis continues to escalate, Rebecca’s story serves as a stark reminder of the human cost of policy decisions. Families are being squeezed out of their communities, making the need for urgent reform more pressing than ever.
For those following this issue, the immediate focus should be on how government actions will address the growing demand for affordable housing and whether advocacy efforts will shift negative gearing policies to support long-term rentals.
Stay tuned for more updates as this situation develops.
